XTZ Plummets 12% Overnight As Bears Seemingly Take Control

  • Despite the latest price drops, Tezos continued to hold the 10th position in terms of market cap.
  • XTZ pairs keep showing weakness as bears charge toward key support levels.
  • Tezos broke down from a strong bullish area after losing 9%.

XTZ/USD: Tezos Prepares For Huge Drop Following Wedge Breakdown

Key Resistance Levels: $3.6, 3.9, $4.2

Key Support Levels: $2.9, $2.55, $2

xtzusd_chart
XTZ/USD. Source: TradingView

Since our previous price analysis, Tezos has shown a lot of weakness after a failed attempt to conquer $4. Following an 18% loss in 7 days, XTZ is now changing hands around $3.22 against US Dollar with 7. 84% drops in the last 24-hours.

Meanwhile, Tezos’s correction appeared to be just starting if we consider the latest breakdown on the two-week wedge pattern on the 4-hours chart.

Despite the drop in price and volume, Tezos remains the 10th largest cryptocurrency in terms of market capitalization.

Tezos Price Analysis

After dropping from the wedge’s resistance at $3.9, last week, the bears continued to show interest as the price dropped to $3.2 today. Considering the wedge breakdown, XTZ could drop into the green support zone of $2.9, followed by $2.55 or even $2.

The closest resistance for the bulls now is $3.6 – the red resistance area on the chart. In case the bulls turned up and tried to overcome this resistance, the next level to watch is $3.9 – the monthly high. A break above this resistance could trigger fresh high around $4.2.

From a technical perspective, however, Tezos is forming a bearish pattern on the 4-hours.

XTZ/BTC:  Tezos Targets 30000SAT Level But Selling Is Low At The Moment

Key Support Levels: 35500SAT, 40000SAT, 42000SAT

Key Resistance Levels: 29580SAT, 26000SAT, 21400SAT

xtzbtc_chart
XTZ/BTC. Source: TradingView

Against Bitcoin, Tezos has witnessed a lot of bearish sentiment over the past few days following a steady drop from 40000SAT level – the February 20 high. XTZ is now priced at 33000SAT level after losing 8.10% under 24-hours trading.

More importantly, the XTZ price has dropped from a rising channel, which indicates that bearish momentum might underway. At the moment, Tezos is slowly approaching a key support level of 29580SAT – the immediate green area on the 4-hours chart.

Tezos Price Analysis

Looking at the 4-hours chart, the bears are gaining control of the XTZ/BTC market. It’s essential to watch out for a close at support, which is located at the 29580SAT level, right in the green area on the chart.

The next support here is 26000SAT. Tezos may even drop to as low as 20000SAT support area before regaining momentum. The volume is also decreasing.

If XTZ shows strength, there’s a close resistance at 35500SAT, where the red zone lies. A push above this zone could allow buyers to reclaim 40000SAT resistance. After this, a fresh price is likely at 42000SAT. But as it stands now, Tezos supply appears heavy as more selling pressure is expected to play out.

 

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Cryptocurrency charts by TradingView.